Post by Banjo on Jan 30, 2015 8:24:46 GMT 7
A BUDGET measure meant to save the government $12.3 million will now cost $15.9m, a policy blunder that appears to be the result of a communication breakdown between the Treasurer and the Social Services Minister.
The blowout of almost $30m in the policy, which restricts overseas travel for people on disability support pensions, does not mean the policy will be ditched, however, with Scott Morrison recasting it as an “integrity measure”.
Last year’s budget claimed the measure would save $12.3m over five years with money “redirected by the government to repair the budget and fund policy priorities”, but legislation passed late last year claims only a $5m saving, due to changes agreed between then social services minister Kevin Andrews and Labor spokeswoman Jenny Macklin.
But some time between the legislation passing and last month’s budget update officials botched the description of the measure, ignoring the legislation and reverting to the old pitch made in May’s budget.
It claimed those who left the country for more than four weeks would automatically have their pension cancelled despite the legislation removing this provision in favour of one that suspends the pension in the first instance before a cancellation after 13 weeks.
“The financial impacts are correct in the MYEFO document. The measure description does not reflect current policy,” Mr Morrison said. “The measure announced as part of the budget included a provision that cancelled DSP payments at the end of the portability period. As a result of the removal of the cancellation provision, the savings estimated from this measure were reduced.
“This is an integrity measure, not a budget savings measure.
“The Department of Human Services was advised of the current policy to be implemented; this ensured customers affected by the changes to DSP portability are paid correctly.”
Mr Morrison did not explain precisely why the measure would now cost so much.
The Australian revealed the story of Queensland man Patrick Nicholls, who has Alzheimer’s disease and faced having his pension cut if he travelled to the Gallipoli centenary to honour his father, a veteran from that battle.
He was later granted a permanent exemption from the policy, which took effect this month.
Ms Macklin blamed Joe Hockey for the dramatic reversal.
“This is just another example of Joe Hockey’s incompetence. Not only did he not consult with the previous minister on this measure, but it’s clear that the measure published in MYEFO is wrong,” she said. “And the measure that was touted as a saving is now actually an expense.”
Ms Macklin said the confusion was unacceptable. “Right now, people on the DSP have no idea whether they are going to have their payment cancelled or suspended,” she said.
People with Disability Australia president Craig Wallace said the turnaround signalled the government’s efforts were more about dog-whistling. “If taxpayers are now paying for this policy they have the right to ask what they are receiving in return,” he said.
The Australian
The blowout of almost $30m in the policy, which restricts overseas travel for people on disability support pensions, does not mean the policy will be ditched, however, with Scott Morrison recasting it as an “integrity measure”.
Last year’s budget claimed the measure would save $12.3m over five years with money “redirected by the government to repair the budget and fund policy priorities”, but legislation passed late last year claims only a $5m saving, due to changes agreed between then social services minister Kevin Andrews and Labor spokeswoman Jenny Macklin.
But some time between the legislation passing and last month’s budget update officials botched the description of the measure, ignoring the legislation and reverting to the old pitch made in May’s budget.
It claimed those who left the country for more than four weeks would automatically have their pension cancelled despite the legislation removing this provision in favour of one that suspends the pension in the first instance before a cancellation after 13 weeks.
“The financial impacts are correct in the MYEFO document. The measure description does not reflect current policy,” Mr Morrison said. “The measure announced as part of the budget included a provision that cancelled DSP payments at the end of the portability period. As a result of the removal of the cancellation provision, the savings estimated from this measure were reduced.
“This is an integrity measure, not a budget savings measure.
“The Department of Human Services was advised of the current policy to be implemented; this ensured customers affected by the changes to DSP portability are paid correctly.”
Mr Morrison did not explain precisely why the measure would now cost so much.
The Australian revealed the story of Queensland man Patrick Nicholls, who has Alzheimer’s disease and faced having his pension cut if he travelled to the Gallipoli centenary to honour his father, a veteran from that battle.
He was later granted a permanent exemption from the policy, which took effect this month.
Ms Macklin blamed Joe Hockey for the dramatic reversal.
“This is just another example of Joe Hockey’s incompetence. Not only did he not consult with the previous minister on this measure, but it’s clear that the measure published in MYEFO is wrong,” she said. “And the measure that was touted as a saving is now actually an expense.”
Ms Macklin said the confusion was unacceptable. “Right now, people on the DSP have no idea whether they are going to have their payment cancelled or suspended,” she said.
People with Disability Australia president Craig Wallace said the turnaround signalled the government’s efforts were more about dog-whistling. “If taxpayers are now paying for this policy they have the right to ask what they are receiving in return,” he said.
The Australian